New Delhi – In a landmark decision that underscores India’s commitment to expanding its clean energy infrastructure, the board of NHPC Limited, the country’s premier hydropower generation company, approved a comprehensive ₹10,000 crore fundraising proposal on August 29, 2025. This substantial capital mobilization, planned for the fiscal year 2025-26, represents one of the largest single-year funding initiatives by a state-run power company and signals an aggressive push to accelerate India’s hydropower capacity.
Diversified Funding Strategy for Maximum Flexibility
NHPC’s board approved a sophisticated financing approach that includes multiple instruments to ensure optimal capital cost and market access. The company plans to raise funds through secured, redeemable, taxable, non-cumulative, and non-convertible corporate bonds issued on a private placement basis. Additionally, the funding strategy encompasses term loans from banks and financial institutions, as well as external commercial borrowings (ECBs), providing NHPC with the flexibility to tap into both domestic and international capital markets based on prevailing conditions.
Strategic Asset Monetization Enhances Capital Efficiency
Alongside the new borrowing plan, NHPC’s board also approved the monetization of future cash flows from two operational power stations: the 231 MW Chamera-III and the 520 MW Parbati-III projects in Himachal Pradesh. This innovative approach to asset monetization will securitize revenue streams from these facilities for a ten-year period, unlocking immediate capital while retaining operational control. This strategy demonstrates NHPC’s sophisticated approach to capital management, enabling the company to fund expansion without over-leveraging its balance sheet.
Driving India’s Renewable Energy Transition
This massive fundraising initiative positions NHPC as a key catalyst in India’s renewable energy transition. Hydropower plays a crucial role in India’s energy security strategy, providing not only clean electricity but also grid stability and storage capabilities that complement variable renewable sources like solar and wind. The fresh capital will enable NHPC to fast-track the development of its extensive project pipeline, contributing significantly to India’s ambitious target of achieving 500 GW of renewable energy capacity by 2030 and reinforcing the nation’s commitment to net-zero emissions by 2070.
